Are you quite familiar with what we call the sunk costs bias? At one point in time, lots of people are faced with these challenges where they continue to invest extra resources (could be money, time, products, happiness) into projects despite visible evidence that these things are clearly dead. I’d like to say that we are all born to explore but it is also not wise to fetch water from a stream with a basket. Everyone is born with magic in their hands, make use of yours. If you want to build something worth remembering you’ll have to be creative to explore your inner mind.
How can a baker be lacking bread in his/her house? There must be a problem if that happens. In business, resources are the key! What are your resources? Is it money, time, product, etc. ? What are you giving too much time or money to that is not being favorable to you and you’re having the mentality that it would get better with time? How much time do you have left and what have you gained so far from investing so much in the past on that concern? Snap out of it!! Do you know you can predict your finances by creating what you want? This sunk cost bias is like a nightmare and it’s a challenge for most leaders and business owners out there and am going to teach you how to manage it like a Pro and grow your finances.
How to Stop Investing Unwisely Due To The Sunk Costs Bias
- Change The Way You Think: The best way to achieve this is to sleep over the issue you are spending frivolous time or resources on. Ask yourself this one question “Am I ready to go broke in this economy?” If your answer is NO, then welcome on board!! Don’t spend time reasoning or contradicting your thoughts of still expecting things to be better. Go to sleep! Sleepover it with the mindset of I love myself and want to live happily for longer. Just with that answer, you’ve just made a wish and the magician in you will showcase itself. Sleep with the new thought, you’ll be surprised you don’t have to do too much to change.
- Set New Financial Goals & Plans: Set up a smart plan to help you achieve a better goal for yourself. What would you want your finances to be like for that quarter? How do you intend to manage it profitably? Look at your income and expenditures. If the expenditure has always been on the high side with little profits over-write it. For some expenditure, have different saving plans for the year this will motivate you to work on increasing your income. The goal is to be happy when saving in these goal plans of yours so you don’t have to be grumpy about it.
- Focus On Your Savings: Create a Budget plan to help you save more and sort out most of the debts you’ve previously incurred due to the sunk costs bias.
- Identify Investment Opportunities: Be smart enough to recognize investment opportunities but observe properly to know if it would be beneficial along the line. If not, try another venture instead of investing in nothing to avoid the sunk costs bias once again. Change your habits of approach towards money ventures: be mindful of overspending without getting results.
- Get Various Bank Accounts: Don’t save in one account, have several accounts to save with for your different goals. Always be prepared to explore better options so you don’t have to be caught off guard at any given opportunity to increase your finance. This will help you always to have funds at your disposal.
- Focus! Focus!! Focus!!! – The ultimate goal is to win more and lots of money and not to lose it. Focus on expanding your income. Be passionate and determined about this and all your visions and dreams will come through.
Control your mind, rectify your thoughts, refine your ideas and stay positive towards making more money rather than losing and with a snap of your fingers. Make that spark now in your finances with the snap of your fingers. Stop wasting and thinking, you can do better than that in your finances. Join the winning team now! Make that quick turn towards the ray of light of hope!!